Old Dominion Freight Line posts lower 1Q profit, higher revenue

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Old Dominion Freight Line Inc. on Tuesday, April 22, announced financial results for the first quarter ended March 31. Revenue increased 15.1 percent to $368.2 million from $319.9 million for the first quarter of 2007. Net income was $10.4 million compared with $13.6 million for the first quarter of 2007. Old Dominion’s operating ratio was 94.3 percent compared with 92.2 percent for the first quarter last year.

“Old Dominion’s operations performed relatively well in a challenging environment for the first quarter of 2008, with increased revenue and tonnage coming in slightly below our expectations,” said Earl Congdon, executive chairman of the Thomasville, N.C.-based less-than-truckload carrier. “Our operating results were masked, however, by the significant increase in fuel costs for the quarter, a competitive pricing environment and costs associated with severe weather that affected parts of the United States throughout the first quarter.”

Congdon said Old Dominion is confident in its ability to continue gaining market share within its existing service center network and through the opening of new service centers. “Even with these strengths, we remain cautious in our earnings outlook for the remainder of 2008 due to a challenging economic environment and ongoing pricing pressure experienced through the first quarter,” he said. “We expect Old Dominion to continue to outperform the LTL industry averages in terms of revenue and tonnage growth and operating ratio.”